Week 9 - Nonlinear Regression

Content for week of Monday, March 21, 2022–Friday, March 25, 2022

Overview

Let’s make regressions faaaancy, with three new friends: polynomials, logarithms, and interactions!

Reading Guide

Chapter 8: Nonlinear Regression Functions

SW 8.1 A General Strategy for Modeling Nonlinear Regression Functons

Key takeaway here - think about the economic theory and its application to determine the best approach to modeling!

SW 8.2 Nonlinear Functions of a Single Independent Variable

Polynomials and logs. Note that this section includes only 3 ways of setting up equations: level-level, log-log, log-level. We’ll also cover level-log, because, why not?

SW 8.3 Interactions Between Independent Variables

Three types of interactions you should know:

  1. Binary-binary
  2. Continuous-binary
  3. Contnuous-continuous

Videos

This video talks us through polynomial and logarithmic regressions. We will do interactions (SW 8.3) entirely in class. Don’t forget to complete VQ8 on Blackboard!

Last updated on March 21, 2022

Edit this page